Daily Digest

Daily Digest 10/4 - Cheap Debt Fails To Spur Economy, Rampant Inflation In 2011, Energy To The East

Monday, October 4, 2010, 9:45 AM
  • Cheap Debt for Corporations Fails to Spur Economy
  • More Countries Adopt China’s Tactics on Currency
  • Step Aside ECB: China Becomes Lender Of Last Resort To Failing Greece, In Exchange For Petrobras-Like Shell Game
  • Ferfal on the Argentina's 2002 Collapse
  • Rampant Inflation In 2011? The Monetary Base Is Exploding, Commodity Prices Are Skyrocketing And The Fed Wants To Print Lots More Money
  • The Oil 'Peak' Has Been Reached
  • Prediction from Chris Martenson
  • Energy To The East The New Mantra
  • Energy Bosses Awarded Huge Bonuses As Bills Go Up

Our 'What Should I Do?' guide has steps to cook, see & stay warm in times of power outage


Cheap Debt for Corporations Fails to Spur Economy (jdargis)

This situation underscores the limits of Washington policy makers’ power to stimulate the economy. The Federal Reserve has held official interest rates near zero for almost two years, which allows corporations to sell bonds with only slightly higher returns — even below 1 percent. But most companies are not doing what the easy monetary policy was intended to get them to do: invest and create jobs.

More Countries Adopt China’s Tactics on Currency (jdargis)

In Europe, policy makers have begun to fret that, despite the debt crisis that sent investors fleeing just a few months ago, the euro has now risen sharply again against the dollar, potentially weakening exports by making European goods more expensive. Those exports have been one of Europe’s few sources of growth, and President Nicolas Sarkozy of France, who will take over leadership of the Group of 20 biggest economies, said over the weekend that he was pushing for a new system of coordinating global currencies as wealthy nations did in the 1970s, before a free market orthodoxy took hold.

Step Aside ECB: China Becomes Lender Of Last Resort To Failing Greece, In Exchange For Petrobras-Like Shell Game (pinecarr)

In exchange for the Chinese last-ditch rescue financing, which by the way is so transparent that everybody, except maybe for the Norwegian wealth fund will see right through it, Greece, in what is an almost identical replica of the Petrobas shell game, will use the money to turn around and buy Chinese ships. "Wen said a $5 billion shipping fund will be set up to tighten relations between the countries’ two maritime industries and facilitate the sale of Chinese vessels to Greeks." Truly brilliant what Keynesians will come up with in the last days of a collapsing economic religion.”

Ferfal on the Argentina's 2002 Collapse (pinecarr)

This describes the collapse of the Argentinian economy and the hyperinflation of its currency. In 2002 the people of Argentina experienced such a scenario and I talk with Fernando Aguire who blogs from Buenos Aires about what is was like to experience it firsthand and what he thinks are similiarities and differences in our situation in the US.

Rampant Inflation In 2011? The Monetary Base Is Exploding, Commodity Prices Are Skyrocketing And The Fed Wants To Print Lots More Money (pinecarr)

Are you ready for rampant inflation? Well, unfortunately it looks like it might be headed our way. The U.S. monetary base has absolutely exploded over the last couple of years, and all that money is starting to filter through into the hands of consumers. Commodity prices are absolutely skyrocketing, and it is inevitable that those price increases will show up in our stores at some point soon.


The Oil 'Peak' Has Been Reached (pinecarr)

Jorge Nascimento Rodrigues is perhaps the only journalist in Portugal aware of the issue of oil scarcity. During the past few years, I have had the opportunity to collaborate with him several times, bringing the Peak Oil message to a larger audience on an almost regular basis. Last weekend, the largest weekly newspaper in Portugal (and among the diaspora), Expresso, had another article in its Economy section, penned by Jorge with a few thoughts on present events and trends.

Prediction from Chris Martenson (pinecarr)

Chris Martenson has released a very good writeup about 3 things that are "fact" more or less that have the potential to drastically alter investment returns over the next 5 years.

Another thing that Chris talks about is peak oil. While I have listened to his Crash Course and agree with the peak oil idea Chris, as a research scientist by training, understands the facts much better than I do. If Chris thinks that we are near "peak exports" then we may very well be in a very different world in 10 years...a world of scarcity (at least in terms of petroleum products).

Energy To The East The New Mantra (pinecarr)

President Medvedev's visit to China this week put the seal on a number of new energy deals. The negotiations have been drawn out, and there is still more to do. But there' is now a greater sense of urgency.

Energy Bosses Awarded Huge Bonuses As Bills Go Up (pinecarr)

Electricity and gas bosses will pocket bonuses worth millions of dollars this year at the same time as families face record rises in power bills. Thousands of low-income households have been crippled by electricity price rises of 30 per cent since July last year but energy executives have cashed in by collecting huge pay packets.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."


saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4236
Re: Daily Digest 10/4 - Cheap Debt Fails To Spur Economy, ...
  • Just headlines:


Bond Refinancings in Europe Outweigh Deficit Cuts

Spanish Towns Struggle Under Crushing Debts

Spain's Reserve Pension Fund to Continue Buying Domestic Bonds After Cut

U.K. Banks' Funding Gap May Force New Bailout, Report Warns and U.K. Banks 'May Require Another Taxpayer Bailout'

'Black Swan' Author Says Dubai More Robust Than US

Japan Government Presents Y4.8-Tln Stimulus Plan To Opposition

Currency war fears tinge IMF meetings

Fed Bond Buying's Unintended Consequences May Mean Higher Rates

Reports says that EU must spend Euro 1 trillion by 2020 on upgrading the electricity grid system

Saudi fiscal gap widens in 2009

Oil Rising to $85 in '11 Survey Threatens OPEC on BRIC Demand

S&P 500 Profits Cut for First Time in Year in Analyst Forecasts

Irish Central Bank Says Deficit a `Priority' as it Cuts Growth Forecasts

Rehn predicts end of Ireland's low-tax regime

Romanian Producer Prices Rose 6.7% on the Year in August on Tax Increase

Euro Falls on Concern Debt Issues Will Hamper Economic Recovery

Osborne Says Delaying Cuts Risks UK Downgrade, Market Turmoil

Dad loses home in student loan debt trap

Honolulu sees more vacant office space, rate tops 11%

Cash-strapped states target residency programs for cuts

Auditor General Projects $5 Billion Deficit For 2011-2012 (Pennsylvania)

California Budget Deal Clears Way for Note Sale

J.P. Morgan reopens vault amid gold demand: report

Hikes in Retirement Costs Could Mean Higher Taxes, Layoffs in Rye Area (NY)

Struggles remain for local sector as prices flatten, unemployment soars (Las Vegas)

Gold and Silver Prices Signal the Destruction of the Dollar (Inflation US video)

Super-rich investors buying gold by the ton

IMF admits that the West is stuck in near depression (By Ambrose Evans-Pritchard)

green_achers's picture
Status: Silver Member (Offline)
Joined: Jan 3 2009
Posts: 205
JP Morgan's vault

OK, someone asked this on the linked story, but the answers didn't agree.  Does this mean JPM is selling, buying, or something else?  I would think it could ba a sell signal if they're selling.  Just like it'd be a sell signal if your 3rd cousin-in-law (or some guy on the internet) said he's buying...

Poet's picture
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1892
Spain's Pension Fund = Social Security: Can Only Buy Gov't Bonds


Re: Spain's Reserve Pension Fund to Continue Buying Domestic Bonds After Cut

That sounds so much like our Social Security system - only allowed to buy U.S. Treasury bonds...


jhart5's picture
Status: Bronze Member (Offline)
Joined: Jul 25 2009
Posts: 89
Re: Daily Digest 10/4 - Cheap Debt Fails To Spur Economy, ...

Quotes of the Day

Any people anywhere, being inclined and having the power, have the right to rise up, and shake off the existing government, and form a new one that suits them better. This is a most valuable – a most sacred right – a right, which we hope and believe, is to liberate the world.  Abraham Lincoln

I hope we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial by strength, and bid defiance to the laws of our country.    Thomas Jefferson

I hope our wisdom will grow with our power, and teach us, that the less we use our power the greater it will be.
Thomas Jefferson


saxplayer00o1's picture
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4236
Another big one day increase in our national debt

Treasury Direct Link


The Daily History of the Debt Results

Historical returns from 09/25/2010 through 10/01/2010

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )


Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
09/24/2010 8,962,112,145,545.98 4,504,706,138,177.50 13,466,818,283,723.48
09/27/2010 8,962,045,737,733.70 4,506,128,137,096.38 13,468,173,874,830.08
09/28/2010 8,963,509,129,588.84 4,509,251,954,169.04 13,472,761,083,757.88
09/29/2010 8,963,900,445,439.19 4,502,371,965,926.43 13,466,272,411,365.62
09/30/2010 9,022,808,423,453.08 4,538,814,607,438.71 13,561,623,030,891.79
10/01/2010 9,017,223,006,275.57 4,593,624,579,534.52 13,610,847,585,810.09



Notice that this national debt clock shows debt per citizen at over $44,000

Also notice that it has been exactly 2 months since the national debt hit $43,000 per citizen.

Gado's picture
Status: Member (Offline)
Joined: Aug 31 2008
Posts: 24
Re: Another big one day increase in our national debt


I thought it was about time (Again) that I expressed my appreciation of the outstanding job you do daily. Every day I start with your insights,  Along with my coffee the daily digest of coarse.

thanks again..


idoctor's picture
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest 10/4 - Cheap Debt Fails To Spur Economy, ...

Gold Could Exceed $2,000: Rogers




 The huge rally in gold is expected to continue—with $2,000 an ounce well within sight over the next decade, well-known commodities investor Jim Rogers told CNBC.

Boris Engelberg | Stock4B | Getty Images


[[email protected]  1315.4  ---  UNCH  (0)   ]

will be among the premier plays in commodities, which stand to benefit whether the economy rebounds or not, said Rogers, creator of the Rogers International Commodity Index.

"Gold is going to go a lot higher over the next decade. It may slow down for a while because it's run up so dramatically here in the last few weeks. But gold's going to be much higher," Rogers said. "Adjusted for inflation it should be well over $2,000 now. When I say something like it's going to 2,000 in 10 years it's not a very dramatic statement given the state of the world. I'm sure it's a given."

Rogers said one reason gold will continue to gain is because of what he called the failed policies of the Federal Reserve, its Chairman Ben Bernanke, as well as Treasury Secretary Geithner and other government officials. He said their efforts to prop up the economy have made things worse, not better.

"They've all been dead wrong, totally unadulterated wrong," he said. "Unemployment is higher now than it was before. Everything is worse instead of better. Let people go bankrupt. Let the system clean out and start over."

Either way, he said, investors are better off in commodities than stocks and bonds.

"If the world economy gets better I'm going to make money in commodities," Rogers said. "If the world's economy doesn't get better I'm going to make money in commodities, because (the Fed is) going to print money."

He also said silver may even be a better buy now than gold because it is well off its historical high, while gold has been setting a series of new peaks lately. Rice will do well among soft commodities, he predicted.

"Look at the things that are cheap. Gold is making all-time highs, silver is still 60 percent below it's all-time highs," he said. "So if I was looking at a precious metal, I would look at the places that are still cheap."

jhart5's picture
Status: Bronze Member (Offline)
Joined: Jul 25 2009
Posts: 89
Re: Daily Digest 10/4 - Cheap Debt Fails To Spur Economy, ...

Who Owns The Media? The 6 Monolithic Corporations That Control Almost Everything We Watch, Hear And Read

Back in 1983, approximately 50 corporations controlled the vast majority of all news media in the United States.  Today, ownership of the news media has been concentrated in the hands of just six incredibly powerful media corporations.  These corporate behemoths control most of what we watch, hear and read every single day.  They own television networks, cable channels, movie studios, newspapers, magazines, publishing houses, music labels and even many of our favorite websites. Sadly, most Americans don't even stop to think about who is feeding them the endless hours of news and entertainment that they constantly ingest.


the_naturalist's picture
Status: Member (Offline)
Joined: Jan 9 2009
Posts: 1
Official Trailer for Zeitgeist Moving Forward

The trailer for the next movie in the zeitgeist series has been released. Is a world without money possible. Moving beyond personal accounting in money to community accounting such as genuine progress indicators etc




Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments